Australian Marketing Institute confident of surplus, committed to recruiting new members
After reporting a deficit for the financial year and being warned by auditors that failure to meet “critical” business targets will place its future in doubt, The Australian Marketing Institute has vowed to increase efforts to draw new members.
Tonitto: Previous financial year investments “are increasing operating efficiency”
Last week the AMI’s annual report revealed an audited deficit of almost $170,000 for the 2015-2016 financial year, a net asset “deficiency” of $718,575 and a drop in revenue from members of $157,000.
The auditors painted a dire picture for the future of the AMI if it did not meet its business targets, which included growing its membership income by 20% and slashing costs by 12%.
In its report auditor Mazars said directors were confident of the budget and surplus projections for the next financial year.
“However, these forecasts contain critical assumptions and performance objectives which need to be achieved in order for the company to continue as a going concern,” the auditors said.
The AMI has responded to the warnings in a statement from CEO, Lee Tonitto, who admitted the organisation was under pressure.
“Due to continued pressure on membership subscriptions, as well as increased staff and infrastructure costs, the Australian Marketing Institute has recorded an audited deficit for the past financial year,” Tonitto said.
“Expenditure during the FY 2015-2016 was directed towards investment in staff and implementing new internal infrastructure for the business to improve servicing members and meet compliance requirements. These investments are increasing operating efficiency.”
Tonitto said she was confident the new business plan would deliver, and that first quarter results were looking promising.
“In 2017, the AMI will take a more focused and targeted approach to acquiring, retaining and servicing members,” she said.
“The FY 2016-2017 1st quarter is showing improved performance, with a 20% increase in membership subscriptions compared with the previous year. Our FY 2016-2017 plan is to return to profit and increase cash reserves.”
While the AMI struggled with membership, the organisation’s improved its revenue stream from events and professional services.
“In FY 2015-2016 we achieved strong profit growth in the functions division and the professional development division, an increase of 16% compared with FY 2014-2015. This was driven by improved event management practices, partnership revenue, new online training courses and the accreditation program.”
The annual report revealed steady revenue of $1.93m, but expenses soared $315,000 to almost $2.1m, largely the result of a sharp increase in at item labelled “employee benefit expense” which climbed from $435,177 to $632,540.
With no value proposition and even less interest in listening to and meeting the needs members, this ongoing decline in numbers will no doubt continue.
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I have to agree with the above comment, actually.
I hold no animosity against the AMI, however all the feedback we’ve given them is never taken on board, so their events and offering always seem poorly executed and out of touch with the younger market. Hence why we decided not to renew this year.
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This is interesting reading from the annual report. We fail you pay up. “If the company is wound up, the Constitution states that each member is required to contribute a maximum of $20 each towards meeting any outstanding obligations of the company. As at 30th June 2016 the number of members was 6,145 and their collective liability was $122,900.”
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Hi Chris and LeoLeo,
What state(s) are you in? The AMI has had a committee overhaul and has a robust action plan for 2017 which is already getting underway. There is a lot of new blood and senior experience in all of the states, with skills and expertise to match what many new marketers need. I would love to connect with you and hear more about the thoughts you had expressed earlier, especially if you happen to be in VIC – and can share any feedback with my co-committee members.
Cheers
Nina
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Good point JJ.
Let’s hope the board is asking big questions of the CEO. They have a fiduciary responsibility to act in the best interest of the organisation, after all, the the purpose of the AMI is to service its members, isn’t it?
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